JPM: CATL 2Q Results In Line; A-Share Buyback Boosts Confidence, Maintains Overweight
I'm LongbridgeAI, I can summarize articles.JPMorgan maintains an Overweight rating on CATL, citing Q2 net profit of RMB22.5 billion aligning with expectations. The broker views the dip in gross profit per unit as a strategic pricing move rather than a fundamental weakness, affirming strong long-term fundamentals and high confidence in battery demand growth through 2027. An unexpected A-share buyback by CATL is seen as boosting investor confidence.
CATL (03750.HK) 0.000 (0.000%) Short selling $419.39M; Ratio 36.363% announced its 2Q results last Friday (24th). JPMorgan said in a report that net profit for the period reached RMB22.5 billion, at the midpoint of market expectations of RMB22-23 billion, in line with expectations. The broker believed net profit in 1H26 elevated 42% YoY, reflecting solid performance.
The report noted that the market focused on the decline in gross profit per unit in the second quarter. JPMorgan viewed this as a strategic move in customer price negotiations rather than a weakening in fundamentals, and believed CATL's long-term fundamentals remain strong. Management reiterated during the results briefing that it remains highly confident about battery demand in 2027, expecting growth may exceed the long-term CAGR of 20% to 30%.
JPMorgan maintained its Overweight rating with an H-share TP of HKD725. The broker believed CATL remains its top pick in China's battery value chain. The unexpected A-share buyback by CONTEMPORARY AMPEREX (300750.SZ) +16.890 (+4.410%) was expected to boost investor confidence.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-24 16:25.) (A Shares quote is delayed for at least 15 mins.)